Ch. 35

1997 LAWS OF MARYLAND

(1) PUBLISH AT LEAST ANNUALLY IN THE MARYLAND REGISTER AND
IN A NEWSPAPER OF GENERAL CIRCULATION IN EACH COUNTY NOTICE THAT
DESCRIBES THE CONTINUATION COVERAGE REQUIRED UNDER THIS SECTION;

(2) PRESCRIBE BY REGULATION THE FORM AND CONTENT OF THE
TERMINATION STATEMENT; AND

(3) MAKE TERMINATION STATEMENT FORMS AVAILABLE TO EACH
EMPLOYER WHOSE EMPLOYEES ARE COVERED BY A GROUP CONTRACT.

(H) CLAIMS AND REIMBURSEMENT.

(1) ON REQUEST OF A QUALIFIED SECONDARY BENEFICIARY, FROM
THE DATE OF THE CHANGE IN STATUS UNTIL THE DATE ON WHICH A TERMINATION
STATEMENT IS RECEIVED BY THE EMPLOYER, THE EMPLOYER SHALL MAKE
AVAILABLE TO THE QUALIFIED SECONDARY BENEFICIARY FORMS FOR SUBMITTING
CLAIMS TO THE GROUP CONTRACT INSURER.

(2) ON PRESENTATION OF A DIVORCE DECREE BY A QUALIFIED
SECONDARY BENEFICIARY, THE GROUP CONTRACT INSURER MAY REIMBURSE THE
QUALIFIED SECONDARY BENEFICIARY DIRECTLY FOR HOSPITAL, MEDICAL, OR
SURGICAL EXPENSES THAT THE QUALIFIED SECONDARY BENEFICIARY HAS PAID.

(3) A GROUP CONTRACT INSURER THAT REIMBURSES A QUALIFIED
SECONDARY BENEFICIARY IN ACCORDANCE WITH THIS SUBSECTION IS NOT LIABLE
TO ANY OTHER PARTY FOR PAYMENT FOR THE SAME SERVICES.

(4) IF THE INSURED RECEIVES REIMBURSEMENT FROM THE GROUP
CONTRACT INSURER FOR HOSPITAL, MEDICAL, OR SURGICAL EXPENSES THAT A
QUALIFIED SECONDARY BENEFICIARY HAS PAID, THE INSURED IMMEDIATELY
SHALL PAY THE REIMBURSEMENT TO THE QUALIFIED SECONDARY BENEFICIARY
UNLESS A WRITTEN AGREEMENT OR COURT ORDER PROVIDES OTHERWISE.

(I) LIABILITY FOR TERMINATION OF COVERAGE.

(1) AN EMPLOYER THAT TERMINATES CONTINUATION COVERAGE
AFTER NOTICE BY THE INSURED OR QUALIFIED SECONDARY BENEFICIARY, OR AN
INSURER THAT TERMINATES CONTINUATION COVERAGE AFTER NOTICE BY THE
EMPLOYER, IS NOT LIABLE TO THE INSURED OR QUALIFIED SECONDARY
BENEFICIARY FOR BENEFITS THAT OTHERWISE WOULD HAVE BEEN PAYABLE
UNDER THIS SECTION IF THE TERMINATION:

(I) IS MADE IN GOOD FAITH;

(II) IS REASONABLE UNDER THE CIRCUMSTANCES; AND

(III) IS NOT THE RESULT OF A MUTUAL OR MATERIAL MISTAKE OF

FACT.

(2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION, RECEIPT
BY THE EMPLOYER OF A TERMINATION STATEMENT IS CONCLUSIVE EVIDENCE OF
TERMINATION, AND NEITHER THE EMPLOYER NOR THE INSURER IS LIABLE TO THE

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